Tagged: taxes

LANSING, Mich. (AP) - Lower-than-expected tax collections could threaten parts of Gov. Rick Snyder's next state government budget plan.

Republicans who control the Michigan Senate have preliminary plans to spend roughly $150 million less overall than Snyder has proposed for the fiscal year starting in October.

The targets include about $25 million less than Snyder proposed for information technology system upgrades and $45 million less on the state prison system.

The Senate targets do not reduce Snyder's funding proposals for education. Proposed spending would be relatively flat for K-12 schools, while universities and community colleges could get average increases of about 3 percent.

The Snyder administration says it's too early to change its budget plan, noting more information will be available when state economists gather in May for an official revenue estimating conference.

Voters may soon decide whether Michigan should scrap the 19-cents-per-gallon tax on gas at the pump in favor of a sales tax increase of 1 percent.

The change would help generate more money for transportation funding.

A proposal to put the question to voters is gaining momentum with some legislative leaders.

That change would require a constitutional amendment and put the question to voters on the ballot.

Republican state Senator Howard Walker sponsored the measure. He said if taxpayers are asked to pay more to fix the state’s roads, they should have a voice.

A new report by the Michigan League for Human Services takes a look at Michigan's shifting tax policy and it's impact on low-income families.

The report shows what we already know, that businesses in Michigan will receive a tax cut in the state while individuals will pay more.

Low income families, the report's author Joanne Bump concludes, will be hit the hardest.